Don’t be distracted by rapid revenue growth, but instead focus on after tax profits that can be returned to shareholders.

Comparable companies like Facebook and LinkedIn both reported encouraging signs recently. Facebook announced a profit for the second quarter of 2013, reversing a loss in the comparable period.

However, Questor would like to see a full year’s audited results rather than just three months trading. Facebook shares at around $44, are now well above the $38 float price, having slumped to lows around $17 last year.

Another concern is that Twitter’s market has incredibly low barriers to entry. The company’s meteoric rise shows how quickly technology companies can rise and fall.

The technology space is littered with calamities: Bebo, the social network once valued at $850m by AOL, was recently sold for $1m.